Wednesday, April 16, 2008

Do you think your auto insurance rates are too high? Shop around! It seems that every day we hear ads on the radio and TV where insurance companies are offering lower rates on insurance. It is called the free market.

But no. Our Democratic colleagues want to further regulate the auto insurance business by passing HB4993. This bill allows the Office of Financial and Insurance Services or any consumer to challenge their insurance rates, setting up a hearing process where bureaucrats in Lansing can arbitrarily decide whether a private insurance company can raise rates or not.

We can try to bring "equity" to the process, but all we will end up doing is providing enough of a negative incentive to the insurance companies that they will simply decide not to do business in the state. As the number of auto insurance companies decline, the price for auto insurance will, of course, go up.

1 comment:

When will people get it figured out. You have to shop for the best price whether it is clothes food or car and home insurance. I shop once a year. So far I can't beat what I have. No one can compete and I am probably $300-400 below what most people are paying and My deductible on both car and home insurance is only $100. One car with full coverage and one with Pl PD and comprehensive. And replacement cost on our homeowners and contents.

It's called free market competition. We don't need the state to fix what isn't broke.